Silvergate Halts Series Dividends in Preservation of Balance Sheet

• Crypto-friendly bank Silvergate announced its suspended payment of dividends on its series A preferred stock.
• Silvergate is taking decisive action to navigate the current environment, but its mission in the crypto industry has not changed.

Silvergate, a California-based crypto-friendly bank, is halting dividend payouts to remain highly liquid as the digital currency market tries to pull itself out of the liquidity crisis of 2022.

The bank made the announcement on January 27, saying that it is halting “the payment of dividends on its 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, in order to preserve capital.”

The decision comes as the cryptocurrency market is facing a number of challenges, including the collapse of the Terra ecosystem and the bankruptcy of Celsius Network. These events have caused a sell-off in the cryptocurrency market, and have led to concerns about the stability of the industry.

Silvergate is a major lender to the cryptocurrency industry, and it has been hit hard by the recent sell-off. The bank lost $33.16 per common share in the fourth quarter of 2022, and its stock price has fallen by nearly 27% year-to-date.

By halting dividend payouts, Silvergate is hoping to conserve capital and shore up its balance sheet. The bank said that it will continue to pay interest on its debt, but that it will suspend dividend payouts until market conditions improve.

The decision to halt dividend payouts is a sign of the challenges facing the cryptocurrency industry. The market is still in its early stages of development, and it is prone to volatility. As the industry matures, it will need to find ways to become more stable and resilient.

The decision by Silvergate to halt dividend payouts is a step in the right direction. It shows that the bank is taking the current market conditions seriously and is taking steps to protect its shareholders.